Warren County Schools is dipping into its financial reserves to the tune of $870,000 in order to finish paying for projects at Warren County High School, Bobby Ray and Irving College.
“As you know, the projects are winding down,” said Director of Schools Bobby Cox. “As part of our agreement with the $4.8 million, I think that’s what we ended up having and the amendments that we bid, the contract was over a little bit. Our part is $870,000. That’s what’s left for us and that’s what we agreed to pay.”
The three projects were estimated to be $4.8 million. When the bids came in, the cost was approximately $1 million over that amount. Warren County commissioners asked Cox if the school system could afford the overage and he said it could.
Cox says $218,000 of the $1 million would be used to purchase new cafeteria equipment and that money has already been transferred from school nutrition and into the line item for construction.
“The cafeteria equipment will be purchased out of the School Nutrition Department,” he said. “That’s $218,000. We’ve already moved that money.”
The Tennessee Department of Education requires schools to keep 3 percent of their annual operational expense as a financial reserve. Cox said the Tennessee Comptroller of the Treasury has reviewed the school’s budget and approved the transfer of $870,000 from its reserves.
According to information presented to county Education Committee members Diane Starkey, chairman, Terry Bell, Morris Bond and Scott Rubley, the school system currently has $4.2 million in its BEP (Basic Education Program) reserves and $1.8 million in its local fund balance for a total of $6 million. After the transfer of $870,000 and a reimbursement for the purchase of three vehicles for driver’s education, the school system will have $5.2 million in total fund reserves.
At the end of the 2015-16 fiscal year on June 30, Cox said he estimates the school system will have approximately $3 million and total fund reserves of $2.28 million. TDOE requires $1.49 million (3 percent) be held in reserve which will leave the school with $787,602 to begin the 2016-17 fiscal year.
Committee members unanimously approved the transfer.